What is an "overpayment" in the context of workers' compensation benefits?

An "overpayment" in the context of workers' compensation benefits is defined as a situation where an injured worker receives benefits that exceed what they are legally entitled to under the workers' compensation laws. This can occur due to errors in calculation, adjustments in the worker's eligibility status, or changes in the extent of the worker's injury or ability to work.

When an injured worker receives an excess amount, it creates an obligation for the workers' compensation insurer or employer to seek repayment of the overpaid benefits. Correctly identifying and addressing overpayments is critical to ensure compliance with state regulations and to manage the financial aspects of the workers' compensation system effectively.

The other scenarios described in the options do not align with the definition of overpayment. Receiving exactly what one is entitled to, receiving less than one is entitled to, or being denied all benefits do not constitute an overpayment situation. Understanding this concept helps adjusters manage and resolve claims accurately, ensuring that both the rights of the injured worker and the financial integrity of the workers' compensation system are maintained.